Article

More Distributions Points = More Sales?

One of the realities of having more distribution points, is it costs more to get your products in broad distribution. Pushing products has a cost associated with it, namely the sales and marketing funds that are required to sell the product in to store owners. Whereas, having retailers pull the product to their location is ideal, but seldomly happens. Why, should be the next logical question asked?

Cost per delivery location is a key measurement (key performance indicator KPI) for most distributors of products. In convenience stores, the type of truck (whether it has refrigeration, frozen, extra axles for weight, tail gates, among others), determines a significant part of the cost to deliver. Cube van drivers are paid $10 dollars less than a class A driver who manoeuvres a 53 foot trailer in parking lots. Why such a big truck then?